Payment Options That Reduce Checkout Abandonment

Limited payment options cause 9% of checkout abandonment. Customers expect to pay their preferred way. When they cannot, they leave. This guide covers which payment methods have the highest conversion impact and how to prioritize them for your Shopify store.

The Payment Problem

Why customers abandon over payment:

• Preferred payment method not available
• Do not trust the checkout with card details
• Cannot afford full price upfront
• Concerned about international fees
• Payment method they have loaded with funds is not accepted

The fix: Offer multiple payment options that match customer preferences. But not all payment methods are equal in conversion impact.

Payment Method Categories

Credit/Debit Cards

What it is: Traditional card payments via Shopify Payments, Stripe, or other processors.

Conversion impact: Baseline. This is the default expectation.

Must have:

• Visa
• Mastercard
• American Express
• Discover (US)

Implementation: Enabled by default with Shopify Payments.

Notes: Do not remove card payments. Some customers specifically want to use cards for rewards points or purchase protection.

Digital Wallets

What they are: Apple Pay, Google Pay, Shop Pay. Stored card information for one-tap payment.

Conversion impact: High. 1.7x higher checkout conversion than standard checkout (Shopify data for Shop Pay).

Why they work:

• No typing card numbers
• Biometric authentication (feels secure)
• Works especially well on mobile
• Reduces friction dramatically

Must have (in order of priority):

1. Shop Pay (Shopify's native wallet)
2. Apple Pay
3. Google Pay
4. PayPal (covered separately)

Implementation: Shop Pay: Enabled automatically with Shopify Payments Apple Pay/Google Pay: Settings > Payments > Enable in Shopify Payments

PayPal

What it is: Third-party payment platform with buyer protection.

Conversion impact: Significant for certain audiences. 44% of online shoppers have PayPal accounts.

Why it works:

• Trusted brand (buyer protection)
• No need to share card details with merchant
• Popular with international customers
• PayPal balance users want to use their funds

Who values it most:

• Customers who distrust unfamiliar stores
• International buyers
• Customers with PayPal balance
• Older demographics

Implementation: Settings > Payments > PayPal Express checkout: Enable PayPal buttons on product and cart pages, not just checkout.

Fees: 2.9% + $0.30 per transaction (standard rate).

Buy Now Pay Later (BNPL)

What it is: Split payments into installments (4 payments, 0% interest typically). Klarna, Afterpay, Affirm, Shop Pay Installments.

Conversion impact: Very high for certain price points. Can increase conversion 20-30% and increase average order value 40-50%.

Why it works:

• Makes expensive items accessible
• No interest (on most plans)
• Low commitment per payment
• Popular with younger demographics

Best for:

• Average order value $100+
• Fashion, electronics, home goods
• Younger customer base (18-34)
• Non-essential purchases

Not ideal for:

• Very low AOV (under $50)
• Consumables/subscriptions
• B2B sales

Options:

| Provider | Split | Approval | Shopify Integration | |----------|-------|----------|---------------------| | Shop Pay Installments | 4 payments | Soft credit check | Native | | Klarna | 4 payments or financing | Soft credit check | App | | Afterpay | 4 payments | Soft credit check | App | | Affirm | 3-36 months | Credit check | App |

Implementation: Shop Pay Installments: Enabled with Shopify Payments (US merchants) Others: Install app from Shopify App Store, connect account.

Fees: Typically 4-6% per transaction (higher than cards).

Alternative Payment Methods

Bank transfers / ACH:

• Lower fees than cards
• Popular for B2B
• Slower settlement
• Apps: Finix, various ACH providers

Cryptocurrency:

• Niche audience
• Growing acceptance
• Apps: BitPay, Coinbase Commerce

Regional payment methods:

• iDEAL (Netherlands)
• Bancontact (Belgium)
• SEPA (Europe)
• PIX (Brazil)
• Essential for international stores

Priority Order for Implementation

Tier 1: Must Have (Week 1)

1. Credit/debit cards via Shopify Payments
2. Shop Pay (automatic with Shopify Payments)
3. Apple Pay (enable in settings)
4. Google Pay (enable in settings)

These are free to enable and cover the vast majority of customer preferences.

Tier 2: High Impact (Month 1)

1. PayPal (if you do not have it)
2. Shop Pay Installments (if AOV > $50 and US-based)

PayPal adds a trusted alternative. Shop Pay Installments captures customers who cannot or prefer not to pay full price.

Tier 3: Situational (When Applicable)

1. Klarna/Afterpay/Affirm (if AOV > $100 and younger demographic)
2. Regional payment methods (if significant international traffic)
3. ACH/Bank transfers (if B2B sales)

These require more setup and have higher fees but serve specific customer segments.

Payment Method Placement

Where payment options appear affects conversion.

Express Checkout Buttons

Placement options:

• Product page (above/below Add to Cart)
• Cart page (above/below Checkout button)
• Checkout page (top of payment section)

Best practice: Show express options (Shop Pay, Apple Pay, Google Pay, PayPal) early and prominently. These are the highest-converting paths.

Shopify settings: Settings > Checkout > Checkout appearance Enable "Show express checkouts on product pages" and "Show express checkouts on cart page"

Payment Section in Checkout

Order of options: Shopify automatically orders payment methods. You can customize order in some cases.

Recommendation:

• Lead with express options (wallets)
• Then standard card payment
• Then BNPL options
• Then alternative methods

BNPL Messaging on Product Pages

BNPL providers encourage showing installment pricing on product pages:

"$200 or 4 payments of $50 with Klarna"

Impact: Increases consideration for higher-priced items. Customers see affordability before adding to cart.

Implementation: Most BNPL apps include product page widgets. Configure in app settings.

International Payment Considerations

If you sell internationally, payment preferences vary significantly by country.

United States

• Cards dominant
• PayPal popular
• BNPL growing rapidly
• Shop Pay widely recognized

United Kingdom

• Cards dominant
• PayPal popular
• Klarna/Clearpay (Afterpay) growing
• Apple Pay adoption high

Germany

• PayPal very popular
• Klarna dominant for BNPL
• Bank transfer preferred by some
• Cards less dominant than US/UK

Netherlands

• iDEAL (bank transfer) dominant (60%+ of online payments)
• Cards secondary
• Must have iDEAL for Dutch customers

Australia

• Cards common
• Afterpay originated here, very popular
• PayPal widely used

Brazil

• PIX (instant bank transfer) dominant
• Boleto (cash voucher) still used
• Installment credit cards popular

Action: Check your analytics for traffic sources. If significant traffic from specific countries, research their preferred payment methods.

Conversion Data by Payment Method

Based on aggregated e-commerce data:

| Payment Method | Relative Conversion | Mobile Advantage | |----------------|---------------------|------------------| | Shop Pay | 1.7x baseline | High | | Apple Pay | 1.5x baseline | Very high | | Google Pay | 1.4x baseline | Very high | | PayPal Express | 1.3x baseline | Medium | | Standard card | Baseline | Low | | BNPL | 1.2-1.5x for eligible | Medium |

Note: These are approximate. Your results will vary based on audience, product, and price point.

Mobile Impact

Digital wallets have outsized impact on mobile:

• No tiny keyboard for card entry
• Biometric authentication
• Stored shipping addresses
• One-tap completion

For mobile-heavy stores (70%+ mobile traffic), digital wallets are critical.

Fees Comparison

Payment methods have different costs:

| Method | Typical Fee (US) | |--------|-----------------| | Shopify Payments (card) | 2.9% + $0.30 | | Shop Pay | 2.9% + $0.30 | | Apple Pay | 2.9% + $0.30 | | Google Pay | 2.9% + $0.30 | | PayPal | 2.9% + $0.30 | | Klarna | 4-6% | | Afterpay | 4-6% | | Affirm | 2-6% |

Key point: Digital wallets (Shop Pay, Apple Pay, Google Pay) have the same fees as standard cards but higher conversion. They are pure upside.

BNPL has higher fees but increases conversion and AOV. Do the math for your store.

Example:

• 1000 checkouts, $100 AOV, 50% completion = $50,000 revenue
• Add BNPL, 60% completion, $120 AOV = $72,000 revenue
• Even with 5% BNPL fee on half of orders, net revenue increases significantly

Setting Up Payment Methods in Shopify

Shopify Payments (Cards + Wallets)

1. Go to Settings > Payments
2. Click "Activate Shopify Payments" (if not active)
3. Complete account verification
4. Enable Apple Pay and Google Pay in the same section
5. Shop Pay is enabled automatically

Requirements:

• Supported country
• Valid business information
• Connected bank account

PayPal

1. Settings > Payments
2. Under "Additional payment methods," find PayPal
3. Click "Activate"
4. Connect your PayPal business account
5. Enable PayPal Express on product/cart pages

Shop Pay Installments

1. Must have Shopify Payments activated
2. Go to Settings > Payments
3. Under Shop Pay, enable Installments
4. Currently US-only, orders $50-3000

Third-Party BNPL (Klarna, Afterpay, Affirm)

1. Install app from Shopify App Store
2. Create merchant account with provider
3. Complete verification process
4. Configure app settings
5. Add product page widget
6. Test checkout flow

Testing Your Payment Setup

Functional Testing

1. Place test orders with each payment method
2. Verify successful payment processing
3. Check order appears correctly in Shopify admin
4. Confirm customer receives order confirmation
5. Test refund process for each method

Mobile Testing

1. Test on actual iOS device (Apple Pay)
2. Test on actual Android device (Google Pay)
3. Verify express buttons appear correctly
4. Complete full checkout on mobile
5. Check for layout issues

International Testing

1. Use VPN to simulate other countries
2. Verify regional payment methods appear
3. Check currency conversion if applicable
4. Test with international test cards

Common Payment Setup Mistakes

Mistake 1: Not Enabling Digital Wallets

Shopify Payments includes Apple Pay and Google Pay, but they must be enabled in settings.

Fix: Settings > Payments > Shopify Payments > Enable Apple Pay and Google Pay.

Mistake 2: Missing Express Checkout on Product Pages

Express buttons only on checkout page means customers must click through more steps.

Fix: Enable express checkout on product and cart pages in Settings > Checkout.

Mistake 3: Not Showing BNPL Pricing

BNPL is installed but customers do not see installment option until checkout.

Fix: Add BNPL widget to product pages showing monthly/installment pricing.

Mistake 4: Too Many Payment Options

Showing 10+ payment methods creates decision paralysis.

Fix: Focus on 4-6 most relevant methods. Hide rarely-used options or show under "More payment options."

Mistake 5: Not Testing Mobile

Payment flow works on desktop but buttons are misaligned or hidden on mobile.

Fix: Always test payment flow on actual mobile devices.

Mistake 6: Ignoring International Customers

US payment methods for store with 30% international traffic.

Fix: Add regional payment methods for your significant traffic sources.

Measuring Payment Method Performance

Metrics to Track

By payment method:

• Checkout starts
• Checkout completions
• Conversion rate
• Average order value
• Failed payment attempts

Shopify analytics: Reports > Finances > Payments by method

Google Analytics: Set up e-commerce tracking with payment method as custom dimension.

Analyzing Results

Questions to answer:

• Which payment methods have highest conversion?
• Are BNPL users ordering larger amounts?
• What percentage uses express checkout vs. standard?
• Are there payment failure patterns?

Action from data:

• Promote highest-converting methods (better placement)
• Investigate high-failure methods
• Calculate true ROI of BNPL (higher fees vs. higher conversion/AOV)

The Bottom Line

Essential payment methods (enable immediately):

1. Cards via Shopify Payments
2. Shop Pay
3. Apple Pay
4. Google Pay
5. PayPal

These cover 95%+ of customer preferences with no additional fees beyond standard processing.

High-impact additions (based on your store):

• Shop Pay Installments (if AOV > $50, US-based)
• Klarna/Afterpay (if AOV > $100, younger audience)
• Regional methods (if significant international traffic)

Priority order:

1. Enable all free options in Shopify Payments
2. Add PayPal if missing
3. Consider BNPL based on AOV and audience
4. Add regional methods based on traffic sources

Expected impact:

• Digital wallets: 1.5-1.7x conversion improvement on mobile
• PayPal: 5-10% of orders for unfamiliar visitors
• BNPL: 20-30% conversion lift, 40-50% AOV lift (for qualifying orders)

Payment options are one of the easiest ways to reduce abandonment. Most require only enabling a setting or installing an app. Start with the free options and measure results before adding paid alternatives.